Also known as: lump sums · lump-sum · lump-sum payment · lump sum settlement
Written by attorneys · grounded in primary & secondary sources — see below
A single payment of money made at one time rather than in installments. In tort actions the amount equals the present worth of the full future pecuniary loss. In probate proceedings the payment may satisfy a family allowance when the estate is inadequate to meet all claims.
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Lars Lindstrom suffers a permanent back injury in a car accident caused by Lotus Pharmaceuticals delivery truck. A jury finds future lost earnings of $800,000 spread over thirty years. The court reduces the award to its present worth and orders Lotus to pay that discounted figure in one check rather than monthly checks over the decades.
After Lucas Lee's death his surviving spouse Lillian Locke petitions the probate court for a family allowance. The estate holds only $40,000 after exempt property and homestead claims. The court awards a $20,000 lump-sum payment to Lillian for maintenance during administration instead of monthly installments.
Junior mortgagee Levi Lowe obtains a receiver who collects $50,000 in net rents from an office building before senior mortgagee Lakewood Manufacturing appoints its own receiver. The junior receiver retains the entire $50,000 lump sum for the benefit of Levi rather than turning the funds over to the senior receiver.
Luis Lopez dies from a work injury leaving a widow. State law provides that upon the widow's remarriage she receives a lump-sum payment equal to two years of benefits and periodic payments then cease. The insurer issues the two-year equivalent in one check to the widow.
Leo Lynch's deceased spouse had participated in an ERISA plan that paid a $150,000 lump-sum distribution to the estate. The surviving spouse Lillian Locke claims the amount under ERISA's joint-and-survivor rules. The court treats the lump sum as an accrued benefit subject to the plan's distribution rules.
Loyal Insurance employee Lars Lindstrom reaches retirement age under the Social Security Act. The government calculates his monthly pension but also issues a small lump-sum payment representing the relatively few cases where a one-time benefit is due instead of ongoing monthly amounts.
The award equals the present worth of the full amount the plaintiff would have received at the later time. Courts discount the future stream to its value today before entering judgment.
The court may pay the allowance in a lump sum or periodic installments when the estate is inadequate to discharge allowed claims. The payment goes first to the surviving spouse for the use of the spouse and minor or dependent children.
…by requiring those plans to pay the spouse the nonforfeitable accrued benefits, reduced by certain security interests, in a lump-sum payment. § 1055(b)(1)(C). ERISA's solicitude for the economic security of surviving spouses would be undermined by allowing a predeceasing spouse's heirs and legatees to have a community property…
…listed a number of ultimate sources of the money here involved, including increased employer contributions to the fund or one
…(c). Title II has the caption “Federal Old-Age Benefits.” The benefits are of two types, first, monthly pensions, and second, lump sum
…cease unless there be other total dependents entitled to any death benefit under this chapter. In the event of remarriage, a
…statute neither establishes, nor requires an employer to maintain, an employee benefit plan . The requirement of a one-time, lump-sum payment
Yes. The junior receiver retains the net rents collected before the senior receiver takes possession. Those funds belong to the junior mortgagee even though the senior mortgagee later obtains possession.
The widow receives a lump-sum payment equal to two years of benefits. Periodic payments then cease unless other total dependents remain entitled to benefits.
The lump sum counts as an accrued benefit. The surviving spouse may claim it under the plan's joint-and-survivor annuity rules unless a valid waiver occurred.
The statute authorizes monthly pensions as the primary benefit. A smaller category of lump-sum payments covers the relatively few cases where a one-time distribution is appropriate instead of ongoing monthly amounts.